At the beginning of February, there were some bad reports on the 3d printing business and every stock in this sector fell heavily. That very day DDD came back strongly, but the risk reward wasn't great so I decided to wait. Right now the stock is at that very low, retesting with a , forming a , simply said, offering a better price to buy.
Looking at the weekly chart, there is a hidden divergence, labeled here on the daily. Hidden divergences are continuation signals of the prevailing trend. Back to the daily, I labeled 4 extreme price deviations from the MA wave. Right now, price is strongly deviated and a bounce should come.
The target is close to the round level of 100$, but that is way too far away to consider for the moment. Right now, my target is previous high at 80$ area.
I called a double bottom for 3 reasons :
1 - weekly chart retraced after a crazy move, to its moving averages
2 - I saw signs for the end of correction on other Bubble stox, Facebook, Netflix and Amazon
3 - The diverging double bottom itself.
For me, it was a trade worth to take. My view is simple, and when I see something like what I saw here, I will always take it.
Now, regarding general market conditions, I don't undertstand how you say general market conditions had nothing to do with this. In a bull market, most stocks go up. In a bear market most stocks go down. In a correction, most stocks go down. In rallies, most stocks go up. It's as simple as that. At the moment I posted this chart, I though the correction on the Nasdaq index, and the stox it includes, was over. Well, it wasn't, I was wrong, and all stocks lost a lot of their gain. You tell me general market conditions had nothing to with this. Then please explain to me how you call a long on Netflix while you call a short on 3D? Just explain this to me and if I will see you have a point I will shut up and comment no more.
Regarding infinite margin's views regarding distribution, I didn't argue with that for one second.